Proceeds from the Debentures will be used for repayment of debt, working capital, general corporate purposes, and exploration and drilling opportunities. Aspen has completed a full review of all its current properties and is preparing a development-drilling plan at its Brooks, Alberta property that currently produces 33 bopd. Aspen intends to drill and or participate in 11 wells in the area, and expects that, if successful, production could increase by 150%. Aspen owns a 22.5 to 45 percent working interest at Brooks.
Aspen continues to produce the wells in Manitoba and plans to activate its disposal well and facility as soon as possible. Cumulative production from the 100 percent owned property currently is 45 bopd and is expected to increase to 125 bopd once the wells have stabilized.
"The funds from the financing will allow Aspen to clean up our balance sheet and invest in assets that will generate stable cash flow for the Company," stated Robert Calentine, CEO of Aspen. "Our review has identified several immediate opportunities in our current portfolio of properties where we can execute lower risk drilling programs or workovers to grow our production base. We expect that these types of programs, combined with the significant reductions in our G&A achieved through our continued cost-reductions will provide Aspen a much more stable foundation from which to grow."
Aspen currently has 83,817,104 common shares outstanding. Assuming the conversion of all issued Debentures of $3.143 million into common shares at $0.15 per share, Aspen would have 104,770,437 common shares issued and outstanding.
Aspen Group Resources Corporation is an independent oil and natural gas producer engaged in the acquisition, exploration, production and development of oil and natural gas properties in North America. Aspen's shares trade on the Toronto Stock Exchange under the symbol "ASR".
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